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Rising Costs Makes Hamburg Hotels Struggle While Hotels in Paris are in Bloom

Hamburg hotels experience a serious decline in profit per room of 5.2% because of constantly growing costs. This information is provided in the final results for April 2017 by HotStats.

The second month of spring was a challenging one for hotels in Hamburg. On one hand, they managed to increase RevPAR (revenue per available room) by 2.9% despite obvious declines in such departments as Conference and Banqueting (-23.9%) and Food and Beverage (-4.2%). The growth of RevPAR was mostly fueled by the growth in occupancy of 3.8%. The average room rate lost 1.6% to 165.02 euro in April. The growth of Total Revenue estimated 1.3%, but that was not enough to eliminate the growing costs. April, therefore, stopped the positive trend of Q1, when the profit growth reached 8.4% to 42.40 euro. At the same time, costs added 0.4% compared to the same period a year ago, with payroll and overheads growing the most. Payroll has the biggest share in the total revenue – 27.6%.

Hotels in the French capital finally showed some positive results after a long period of challenges. The increase in profit per room reached 8.9%, helping the year-on-year increase estimate fantastic 22.1%. The year-on-year growth of RevPAR was 3.5%, and TrevPAR fell by 2.8%. However, according to experts, even though hotels in Paris show signs of recovery more frequently, there is still a way to go to reach the results of 2015 and 2016, when the profit per room was 32.9% higher than in April 2017.

27.06.2017

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